02/06/2020 - 10:07
- Clarín.com
- Economy
- Economy
Nike will cease to have a direct presence in the country and will transfer the handling to a representative. The US company announced that it is making "a transition" from its business in Argentina, Brazil, Chile and Uruguay to strategic distributors, which allows for a more profitable, efficient business model in terms of capital and added value. "
For its businesses in Argentina, Chile and Uruguay, the company reached an agreement with the Mexican Grupo Axo . Meanwhile, for Brazil it closed a contract with Grupo SBF.
As a result of these operations, Nike will record a charge of US $ 450 million related to the exchange rate on its balance sheet.
Grupo Axo operates and distributes more than 30 brands in Mexico and Chile . Moreover, he currently has an agreement with Nike and operates five branches of the sports brand.
In its portfolio it has the labels Abercrombie & Fitch, Calvin Klein, Guess, Speedo, Tommy Hilfiger, Victoria's Secret and even Argentina's Rhapsody. It has about 800 points of sale of these brands throughout Latin America and also owns the Mexican chain Promoda, of low prices, and Privalia, a multi-brand e-commerce firm of the so-called "off-price" format that offers great discounts of known companies.
Meanwhile, the SBF Group owns the "Centauro" brand and operates the largest retailer of sporting goods in Brazil and throughout Latin America, with 209 stores.
Nike said the agreement will not change the relationship it has with athletes, clubs and federations in South America, which will remain.
Transactions will be completed by the middle of this year.
“Nike manages successful distribution businesses worldwide and expanding this model in the rest of South America will help drive profitable and sustainable growth. Our partners are committed to serving local consumers and raising retail and digital experiences and sharing Nike's values and commitment with employees, "said Elliott Hill, president of Nike Consumer and Marketplace.
